Federal Employees News Digest

Federal Benefits Q&A

Question: In all my reading, I've not seen mention of a formula for estimating your lump sum payment for annual leave when you retire. Is it as simple as multiplying your hourly rate (from the LES) by the number of hours of AL? Or is there some super-secret formula requiring a super computer to calculate?

Answer: To approximate a retiring employee's lump sum gross payment for unused annual leave, take the retiring employee's number of hours of unused annual leave on the day of retirement and multiply that number by the retiring employee's hourly wage rate. The hourly wage rate can be obtained by the taking the retiring employee's SF 50 salary (which includes locality pay adjustment) divided by 2087 hours.

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Contributors

Edward A. Zurndorfer Certified Financial Planner
Mike Causey Columnist
Tom Fox VP for Leadership and Innovation, Partnership for Public Service
Mathew B. Tully Legal Analyst

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